JPY Analysis 25.11.2019

The US dollar fluctuated in a narrow bullish range during the Asian session to witness the highest since November 18 against the Japanese yen amid the lack of economic data earlier this week by the Japanese economy, the third largest economy in the world and with looking Monday on the upcoming talk of the governor Federal Reserve Jerome Powell in Rhode Island.

At 05:54 AM GMT, the US dollar against the Japanese yen rose 0.12% to 108.83 levels compared to the opening levels at 108.70 after the pair reached its highest level in a week at 108.85, while the lowest level during the session trading at 108.64, knowing The pair started this week on a bullish price gap after closing last week at 108.66 levels.

Investors in the Japanese economy are looking to reveal inflation data with the release of the annual service price index, which may reflect an acceleration in growth to 1.8% versus 0.5% in September. This comes before the Bank of Japan discloses its core annual reading tomorrow. CPI for October.

On the other hand, investors are awaiting the outcome of the speech of the Federal Reserve Governor Powell, before we see later this week the release of several important economic data for the largest economy in the world that may be reflected later on the decisions and directions of the Federal Reserve policy makers. That cut the federal funds rate by 25 basis points for the third consecutive meeting at the end of last month.

Technical Analysis

USDJPY has managed to break above SMA 50 and hold above it, reinforcing expectations for the continuation of the bullish trend over the coming sessions, aiming to visit 109.33 as the next major stop.

Therefore, we are awaiting further rallies today, noting that a breach of the target will push the price to 110.50 as the next target, while the bullish trend will remain intact unless 108.40 is broken and stability below it.

Expected trading range for today is between 108.00 support and 109.50 resistance.

Expected trend for today: Bullish.